New Year resolutions are a trend that most people forget to honor after the first month or even week of 2022. But you are going to stick to them this year because it involves finances and who doesn’t want a life with money-liberal choices. So, here are the 10 New Year resolutions to give your 2022 a boost!
Build better credit score
If your credit score is below 700, it is time to build a better one in the new year. A credit score can be improved by not delaying your bills, getting rid of debts, managing your expenses prudently, and using autopay for recurring bills. This is your first step in building and maintaining New Year resolutions.
Saving is a must
Savings always top the list of top financial New Year resolutions. Why? The more money you save, the more you have! There are numerous paths you can take to save a lot. These entail using a high-yield savings account, 401(k) contributions, halting the impulsive spending during holidays, etc.
A credit card can also motivate savings. That is because they offer credit and rewards like cash back, miles or points to offset the expenses. For example, you can use the annual $120 dining credit from American Express at related restaurants like Ruth’s Chris Steak House, Seamless, Grubhub, The Cheesecake Factory, and other Shake Shack locations.
Commit to a personal budget
A personal budget can seem restricting at times, but it is very helpful in tracking your expenses and saving and seeing where you can save more. A calculated budget helps to maintain a clear policy of what is necessary and what is not.
The process is to first note down all the fixed expenses including phone, mortgage, savings, and grocery. Then you come down to the flexible expenses like eating out and entertainment costs, etc. You can get a list of all your purchases from the credit card statement. You can also see the spending with categories which helps create a budget for the new year too.
Clear credit card dues
Credit card debt is common and most people face it at some point in life. The data by Experian shows that over 61% of Americans carry a credit card and a balance of $6,194, hence a debt is natural at some point.
If you also have credit card debt, you should think about merging. It will balance transfer credit cards where you can incur 21 months of interest-free usage.
A good example of this would be the Citi Simplicity@ Card, it has 0% APR in the starting 21 months and when you make any new purchase you have 14.74% or 24.74% APR. The balance should be transferred within a window of 4 months.
Don’t delay credit card payments
Balance transfers clear the debt but the real benefits come when you actually pay your debt before the deadline. Prior to transferring the balance, you should be well aware of different terms like the interest-free and expiration provisions.
After being familiar with your 0% APR period, make the needed contributions to your credit card debt payment of credit card, and you won’t be incurring anymore in the future if you keep following the path.
Don’t get multiple credit cards
There is no defined limit on the number of credit cards that one can possess. Americans have 4 on average. But that doesn’t stop them from getting one more. The matter is about how much you can handle proficiently.
You should note that your credit report will be the hot topic of discussion for your issuer whenever you apply for a new credit card. Hence, these might have a negative impact on your score, but nothing that cannot jump back after some time.
Pay credit card balance monthly
The credit score is built upon the foundation of payment history. Hence. It becomes all the more crucial to pay your balances in time each month. Paying early helps transform your credit with lower utilization of credit and fewer interest charges or penalty. This also means you will be entering the new month debt-free.
If you cannot pay in full each month, paying the minimum amount is also good. By doing this, you can dodge up to a $40 penalty each month.
Review credit score
You can check your credit score free of cost with line. You can also apply to get your credit score automatically each month. Line’s tools also help you to define the consequence of action like expenses or paying a debt.
Review credit report
Checking your credit report is another crucial step that helps to stay away from frauds and updates the information for the data collecting agencies like Equifax, TransUnion, and Experian. You can get your monthly free credit score report at CreditWise by Experian or Capital One.
You can also get access to credit reports from the bureaus by visiting www.annualcreditreport.com that has been given authority by federal laws.
Get identity theft protection
Getting a subscription to identity theft protection may save you from scams and frauds that drain your money and energy. Protect yourself online with line and get $1 million in identity theft protection insurance.
Line also monitors your social security number, actively reviews your credit and looks at the dark web for any instances of your personal data and alerts you. Good luck with your New Year resolutions.
